OB Unit 4

• What makes you start your day, even when
you don't feel like it?
• Can you recall a moment when you felt

unstoppable? What was the key factor that
fueled your drive during that time?
Describe the Three Key Elements of Motivation
• Motivation is the processes that account for an

individual’s intensity, direction, and persistence of
effort toward attaining a goal.
• The level of motivation varies both between
individuals and within individuals at different times.
Describe the Three Key Elements of Motivation
• The three key elements of motivation are:
1. Intensity: concerned with how hard a person
tries.
2. Direction: the orientation that benefits the
organization.
3. Persistence: a measure of how long a person
can maintain his/her effort.
Compare the Early Theories of Motivation
Maslow’s Hierarchy of Needs
• Maslow’s need theory has received wide recognition,
particularly among practicing managers.
– It is intuitively logical and easy to understand and some
research has validated it.
– However, most research does not, and it hasn’t been
frequently researched since the 1960s.
Comparison of Satisfiers and Dissatisfiers
Source: Based on Harvard Business Review, “Comparison of Satisfiers and Dissatisfiers,” An exhibit from One More Time: How Do You Motivate Employees? by Frederick
Herzberg, January 2003. Copyright © 2003 by the Harvard Business School Publishing Corporation. All rights reserved.
Contrasting View of Satisfaction and Dissatisfaction
• Criticisms of Herzberg’s theory:
• Limited because it relies on self-reports.
• Reliability of methodology is questioned.
• No overall measure of satisfaction was utilized.
• McClelland’s Theory of Needs
– The theory focuses on three needs:
 Need for achievement (nAch): drive to excel, to
achieve in relation to a set of standards, to strive to
succeed.
 Need for power (nPow): need to make others behave
in a way that they would not have behaved otherwise.
 Need for affiliation (nAfl): desire for friendly and
close interpersonal relationships.
• McClelland’s theory has had the best support.
– It has less practical effect than the others.
– Because McClelland argued that the three needs
are subconscious—we may rank high on them but
not know it—measuring them is not easy.
– It is more common to find situations in which
managers aware of these motivational drivers
label employees based on observations made
over time.
Contemporary Theories of Motivation
Self-Determination Theory vs. Goal-Setting Theory
• Self-Determination Theory
– People prefer to feel they have control over their actions.
 Focus on the beneficial effects of intrinsic motivation and
harmful effects of extrinsic motivation.
 Cognitive evaluation theory - When people are paid
for work, it feels less like something they want to do and
more like something they have to do.
– Proposes that in addition to being driven by a need for
autonomy, people seek ways to achieve competence and
positive connections to others.
• When extrinsic rewards are used as payoffs for
performance, employees feel they are doing a good job.
– Eliminating extrinsic rewards can also shift an
individual’s perception of why he or she works on a task
from an external to an internal explanation.
• Self-determination theory acknowledges that extrinsic
rewards can improve even intrinsic motivation under
specific circumstances.
Self-Determination Theory vs. Goal-Setting
Theory
• What does self-determination theory suggest for
providing rewards?
• Self-concordance: considers how strongly
people’s reasons for pursuing goals are consistent
with their interests and core values.
• What does all of this mean?

–For individuals:
Choose your job for reasons other than
extrinsic rewards.
–For organizations:
Provide intrinsic as well as extrinsic
incentives.
Theory
• Goal-Setting Theory
– Goals tell an employee what needs to be done and how
much effort is needed.
• Evidence suggests:
– Specific goals increase performance.
– Difficult goals, when accepted, result in higher
performance than do easy goals.
– Feedback leads to higher performance than does non-
feedback.
• Three other factors influencing the goals-

performance relationship:
–Goal commitment
–Task characteristics
–National culture
• People differ in the way they regulate their thoughts
and behaviors.
– Those with a promotion focus strive for
advancement and accomplishment and approach
conditions that move them closer toward desired
goals.
– Those with a prevention focus strive to fulfill
duties and obligations and avoid conditions that pull
them away from desired goals.
Cascading of Objectives
Theory
• Goal Setting and Ethics
– The relationship between goal setting and ethics
is quite complex: if we emphasize the attainment
of goals, what is the cost?
– We may forgo mastering tasks and adopt
avoidance techniques so we don’t look bad, both
of which can incline us toward unethical choices.
Other Contemporary theories
Self-Efficacy, Reinforcement, and Expectancy Theory
• Self-efficacy theory is an individual’s belief that he or she can perform

a task.
– Enactive mastery
– Vicarious modeling
– Verbal persuasion
– Arousal
• Also known as social cognitive theory and social
learning theory.
Self-Efficacy, Reinforcement, and Expectancy Theory
Joint Effects of Goals and Self-Efficacy on Performance
Source: Based on E. A. Locke and G. P. Latham, “Building a Practically Useful Theory of Goal Setting and Task
Motivation: A 35-Year Odyssey,” American Psychologist (September 2002): 705–17.
Self-Efficacy, Reinforcement, and Expectancy
Theory
• Implications of self-efficacy theory:
– The best way for a manager to use verbal persuasion
is through the Pygmalion effect.
 A form of self-fulfilling prophecy – believing in
something can make it true.
– Training programs often make use of enactive
mastery by having people practice and build their
skills.
Theory
• Reinforcement theory: behavior is a function of its
consequences.
– Reinforcement conditions behavior.
– Behavior is environmentally caused.
• Goal setting is a cognitive approach: an individual’s purposes
direct his or her action.
• Operant conditioning theory: people learn to behave to get
something they want or to avoid something they don’t want.
– B.F. Skinner’s behaviorism.
Theory
• Social-learning theory: we can learn through both
observation and direct experience.
– Models are central, and four processes determine
their influence on an individual:
 Attentional processes
 Retention processes
 Motor reproduction processes
 Reinforcement processes
Theory
• Expectancy theory: a tendency to act in a certain way
depends on an expectation that the act will be followed
by a given outcome and on the attractiveness of that
outcome to the individual.
• Three relationships:
– Effort-performance relationship
– Performance-reward relationship
– Rewards-personal goals relationship
Theory
Expectancy Theory
Theory
• Expectancy theory helps explain why a lot of workers aren’t motivated
and do only the minimum.
• Three questions employees need to answer in the affirmative if their
motivation is to be maximized:
– If I give maximum effort, will it be recognized in my performance
appraisal?
– If I get a good performance appraisal, will it lead to organizational
rewards?
– If I’m rewarded, are the rewards attractive to me?
Forms of Organizational Justice
Equity Theory
Ratio Comparisons* Perception

Inequity due to being under rewarded
Equity
Inequity due to being overrewarded
*Where represents the employee and represents relevant others

• When employees perceive an inequity, they can be
predicted to make one of six choices:
– Change inputs.
– Change outcomes.
– Distort perceptions of self.
– Distort perceptions of others.
– Choose a different referent.
– Leave the field.
Model of Organizational Justice
• Justice Outcomes
– All the types of justice discussed have been linked to
higher levels of task performance and citizenship.
– Third-party, or observer, reactions to injustice can be
substantial.
• Promoting Justice
– Adopting strong justice guidelines in an attempt to mandate
certain managerial behavior isn’t likely to be universally
effective.
• Culture and Justice
– Inputs and outcomes are valued differently in various
cultures.
Implications of Job Engagement
for Management
• Job engagement: the investment of an employee’s
physical, cognitive, and emotional energies into job
performance.
– Gallup organization: more engaged employees in
successful organizations than in average
organizations.
– Academic studies: job engagement is positively
associated with performance and citizenship
behaviors.
Implications of Job Engagement for Management
• What makes people more engaged in their job?

– The degree to which an employee believes it is
meaningful to engage in work.
– A match between the individual’s values and the
organization’s.
– Leadership behaviors that inspire workers to a greater
sense of mission.
Implications of Job Engagement for Management
• Are highly engaged employees getting “too much of a good
thing?”
• Construct is partially redundant with job attitudes.
• It may have a “dark side.”
 Positive relationships between engagement and work-
family conflict.
Compare Contemporary Theories of Motivation
Integrating
Contemporary Theories
of Motivation
Implications for Managers
• Make sure extrinsic rewards for employees are not viewed as
coercive, but instead provide information about competence
and relatedness.
• Either set or inspire your employees to set specific, difficult
goals and provide quality, developmental feedback on their
progress toward those goals.
• Try to align or tie in employee goals to the goals of your
organization.
• Model the types of behaviors you would like to see performed
by your employees.
• Expectancy theory offers a powerful explanation of
performance variables such as employee productivity,
absenteeism, and turnover.
• When making decisions regarding resources in your
organization, make sure to consider how the resources
are being distributed (and who’s impacted), the fairness
of the decision, along with whether your actions
demonstrate that you respect those involved.
Organizational Behavior
Motivation: From Concepts to Applications
Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.
TELECOMMUTING?? NO.
EXTRA MATERNITY LEAVE? YES
• Yahoo! CEO Marissa Mayer – Ban telecommuting practices at Yahoo!!
• Silicon Valley workforce – Google, Intel, Apple, and Oracle – grew by
less than 10 percent.
• Telecommuting increased by 130 percent.
• Critics said it is ant-feminist. Difficulty balance work-life.
• Maternity benefits – 8 weeks of paid leave, mothers addition 8 weeks.
With $ 500 to help with initial child care costs.
• Google 22 weeks with 7 weeks for father.
• Facebook, 4 paid months with $ 4000 in “baby cash”
Learning Objectives
Describe how the job characteristics model motivates by changing the
work environment.
Compare the main ways jobs can be redesigned.
Explain how specific alternative work arrangements can motivate
employees.
Describe how employee involvement measures can motivate employees.
Demonstrate how the different types of variable-pay programs can
increase employee motivation.
Show how flexible benefits turn benefits into motivators.
Identify the motivational benefits of intrinsic rewards.
The Job Characteristics Model
Source: Based on J. L. Pierce, I. Jussila, and A. Cummings, “Psychological Ownership within the Job Design Context: Revision of the Job Characteristics Model,” Journal of
Organizational Behavior 30, no. 4 (2009): 477–96.
• Motivating potential score (MPS)
MPS = Skill variety + Task identity + Task significance/ 3 x
Autonomy x Feedback
The Job Characteristics Model (2 of 2)
• The core dimensions of the job characteristics model (JCM) can
be combined into a single predictive index called the motivating
potential score (MPS).
– Evidence supports the JCM concept that the presence of a set of
job characteristics does generate higher and more satisfying job
performance.
– Studies show that supportive leadership behaviors improved the
job characteristics of R&D professionals.
– Individualistic vs collectivistic culture
Compare the Main Ways Jobs Can Be Redesigned
• Repetitive jobs provide little variety, autonomy, or motivation.
• Job Rotation: Singapore Airlines
– Referred to as cross-training.
– Periodic shifting from one task to another.
– Strengths: reduces boredom, increases motivation, and helps
employees better understand their work contributions.
– Weaknesses: creates disruptions, requires extra time for
supervisors to address questions and training time, and
reduces efficiencies.
Compare the Main Ways Jobs Can Be Redesigned
• Job Enrichment
– Increasing a job’s high-level responsibilities to increase intrinsic
motivation.
 Involves adding another layer of responsibility and meaning.
 Can be effective at reducing turnover.
• Relational Job Design
– To make jobs more prosocially motivating:
 Connect employees with the beneficiaries of their work.
 Meet beneficiaries firsthand.
Guidelines for enriching a Job
Combining tasks Skill variety
Form natural work units Task identity
Establish client
relationships Task significance
Expand jobs vertically Autonomy
Open feedback channels Feedback

Relational job design
• Intrinsically motivating.
• Prosocially motivating.
• Organisation beneficiaries? Helping others.
• Eg: Medtronics – Stories how it saved people’s lives.
• Eg: Lifeguards
Alternative work arrangement
• Flextime: Eg: Kriti is the classic “morning person”
• Flexible work time
• Employees are expected to work specific number of hours per week
• Common core of 6 hours – 9 am to 3 pm
• Extremely popular – Germany – 73%
• Family friendly organisation.
• Works well for clerical jobs.
How Specific Alternative Work Arrangements
Motivate Employees
Exhibit Possible Flextime Staff Schedules
Blank Schedule 1
Percent Time: 100% = 40 hours per week
Core Hours: 9:00 A.M.–5:00 P.M., Monday through Friday
(1 hour lunch)
Work Start Time: Between 8:00 A.M. and 9:00 A.M.

Work End Time: Between 5:00 P.M. and 6:00 P.M.
Blank Schedule 2
Work Hours: 8:00 A.M.–6:30 P.M., Monday through Thursday
(1/2 hour lunch)
Friday off
Work Start Time: 8:00 A.M.

Work End Time: 6:30 P.M.
Motivate Employees
[Exhibit Continued]
Blank Schedule 3
Work Hours: 8:30 A.M.–5:00 P.M., Monday through Thursday
(1/2 hour lunch)
8:00 A.M.–Noon Friday (no lunch)
Work Start Time: 8:30 A.M. (Monday–Thursday); 8:00 A.M. (Friday)

Work End Time: 5:00 P.M. (Monday–Thursday); Noon (Friday)
Blank Schedule 4
Work Hours: 8:00 A.M.–6:00 P.M., Monday through Wednesday
(1/2 hour lunch)
8:00 A.M.–11:30 A.M. Thursday (no lunch)
Friday off
Work Start Time: Between 8:00 A.M. and 9:00 A.M.

Work End Time: Between 5:00 P.M. and 6:00 P.M.
How Specific Alternative Work Arrangements Motivate
Employees
• Job Sharing
– Two or more people split a 40-hour-a-week job.
 Declining in use.
 Can be difficult to find compatible pairs of
employees who can successfully coordinate the
intricacies of one job.
 Increases flexibility and can increase motivation
and satisfaction when a 40-hour-a-week job is
just not practical.
How Specific Alternative Work Arrangements Motivate
Employees
• Telecommuting
– No commuting, flexible hours, and freedom to dress as you,
please.
– Employees who work at home at least twice a week through
virtual devices linked to the employer’s office.
 Some well-known organizations actively discourage
telecommuting, but for most organizations, it remains popular.
 Microsoft, IBM, FedEx, and Infosys follow this.
 Computer-based jobs
 Telmarketers, customer – service, reservation agents.
Motivate Employees
• Telecommuting Advantages
– Positively related to objective performance and job
satisfaction.
– Reduced work-family conflict.
– Reduced carbon emissions.
Motivate Employees
• Telecommuting Disadvantages
– Employer
 Social loafing.
 Difficult to coordinate teamwork.
 Difficult to evaluate non-quantitative performance.
– Employee
 Increased feelings of isolation and reduced coworker
relationship quality.
 May not be noticed for his or her efforts.
Motivate Employees
OB Poll Who Works from Home
Source: Bureau of Labor Statistics, Table 6, from Economic News Release, “American Time Use Survey Summary,” June 24, 2016,
https://www.bls.gov/news.release/atus.t06.htm.
The social and Physical context of work
• Eg: Rahul and Krishna started their profession as teachers.
• More satisfaction comes when intrinsic work tasks are
engaging.
• Isolated from co-workers.
• Job rotations, worker empowerment, and participation.
• Interdependency, social support and Social interactions.
• Work context: Hot, loud, and dangerous work is less
satisfying
Employee Involvement and Employee Motivation
• Employee Involvement: a participative process that uses
employees’ input to increase their commitment to the
organization’s success.
• Research comparison of US and India
• Eg: LIC of India
• Examples of Employee Involvement Programs
– Participative management
– Representative participation
• Participative management
– Joint decision making.
– Acts as a panacea for poor morale and low productivity.
– Trust and confidence in leaders is essential.
– Studies of the participation-performance have yielded
mixed results.
• Representative participation
– Workers are represented by a small group of employees
who actually participate in decision making.
– Almost every country in Western Europe requires
representative participation.
– The influence is minimal
– The two most common forms:
 Works councils
 Board representatives
Variable-Pay Programs and Employee Motivation
• What to Pay:
– Lead, Lag and match.
– Complex process that entails balancing internal equity and
external equity.
– Internal equity – Job evaluation, Compa-ratio.
– External equity – Surveys.
– Some organizations prefer to pay leaders by paying above
market.
– Paying more may net better-qualified and more highly
motivated employees who may stay with the firm longer.
• How to Pay:
– Variable pay programs:
 Piece-rate plans
 Merit-based pay
 Bonuses
 Profit sharing
 Employee stock ownership plans
– Earnings therefore fluctuate up and down.
• Piece-Rate Pay
– A pure piece-rate plan provides no base salary and
pays the employee only for what he or she produces.
– Limitation: not a feasible approach for many jobs.
– The main concern for both individual and team piece-
rate workers is financial risk.
– Manufacturing certain outputs, Eg: Surgeon
• Merit-Based Pay
– Allows employers to differentiate pay based on performance
appraisal rating.
– Salaried employees
– Creates perceptions of relationships between performance and
rewards.
– Limitations:
 Based on annual performance appraisals.
 Merit pool fluctuates.
 Union resistance.
• Bonuses
– An annual bonus is a significant component of total
compensation for many jobs.
– Increasingly include lower-ranking employees.
 Many companies now routinely reward production
employees with bonuses when profits improve.
– Downside: employees’ pay is more vulnerable to cuts.
• Profit-Sharing Plans
– Organization-wide programs that distribute compensation based on
some established formula centered around a company’s profitability.
– Appear to have positive effects on employee attitudes at the
organizational level.
 Employees have a feeling of psychological ownership.
• Gain–sharing plan
 A formula-based group-incentive plan.
 Improvement in group productivity.
 Manufacturing and Healthcare
• Employee Stock Ownership Plan (ESOP)

– A company-established benefit plan in which employees
acquire stock, often at below-market prices, as part of
their benefits.
– Increases employee satisfaction and innovation.
 Employees need to experience ownership
psychologically.
– Can reduce unethical behavior.
– Can be used for community wealth building.
• Evaluation of Variable Pay

– Do variable-pay programs increase motivation and
productivity?
 Generally, yes, but that doesn’t mean everyone is
equally motivated by them.
Show How Flexible Benefits Turn Benefits Into
Motivators
• Developing a Benefits Package
– Flexible benefits individualize rewards.
– Allow each employee to choose the compensation package that
best satisfies his or her current needs and situation.
– Individually tailored to his or her own needs or situation
 Today, almost all major corporations in the United States offer
flexible benefits.
 However, it may be surprising that their usage is not yet global.
 Eg: Sameer and Anusha
Flexible benefits
• Modular plan – Predesigned packages or modules of
benefits, each meets the needs of a specific group of
employees.
• Core-plus plans – Consists of core essential benefits and
a menu-like selection
• Flexible spending plans – allows employees to increase
take-home pay because employees don’t pay taxes
Identify the Motivational Benefits of Intrinsic
Rewards
• Employee Recognition Programs
– Organizations increasingly recognize that important
work rewards can be intrinsic and extrinsic.
– Rewards are intrinsic in the form of employee
recognition programs and extrinsic in the form of
compensation systems.
• Recognize individual differences.
– Spend the time necessary to understand what’s important to each
employee.
– Design jobs to align with individual needs and maximize their
motivation potential.
• Use goals and feedback.
– You should give employees firm, specific goals, and they should get
feedback on how well they are faring in pursuit of those goals.
• Allow employees to participate in decisions that affect
them.
– Employees can contribute to setting work goals,
choosing their own benefits packages, and solving
productivity and quality problems.
• Link rewards to performance.
– Rewards should be contingent on performance, and
employees must perceive the link between the two.
• Check the system for equity.

– Employees should perceive that individual effort and
outcomes explain differences in pay and other
rewards.

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• What makes you start your day, even when

you don't feel like it?

• Can you recall a moment when you felt

• Motivation is the processes that account for an

• What does all of this mean?

• Three other factors influencing the goals-

• Self-efficacy theory is an individual’s belief that he or she can perform

Ratio Comparisons* Perception

Inequity due to being overrewarded

*Where represents the employee and represents relevant others

• What makes people more engaged in their job?

Motivation: From Concepts to Applications

Combining tasks Skill variety

Form natural work units Task identity

Expand jobs vertically Autonomy

Open feedback channels Feedback

Work Start Time: Between 8:00 A.M. and 9:00 A.M.

Work Start Time: 8:00 A.M.

Work Start Time: 8:30 A.M. (Monday–Thursday); 8:00 A.M. (Friday)

Work Start Time: Between 8:00 A.M. and 9:00 A.M.

• Employee Stock Ownership Plan (ESOP)

• Evaluation of Variable Pay

• Check the system for equity.

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